Prebble 'quite relaxed’

Press, 10 March 1988, Page 2

Prebble 'quite relaxed’

BRENDON BURNS

political reporter

The Treasury’s advice to consider selling Air New Zealand shares to foreign buyers has left the Minister of State-Owned Enterprises, Mr Prebble, feeling "quite relaxed.”

Mr Prebble was responding to the Treasury’s suggestion that the Government approach the share sale without pre-conditions. Last June’s Budget announced that a 25 per cent shareholding in Air New Zealand — now wholly owned by the Government — would be sold. But the Treasury said bids for any size of shareholding, including foreign

bids, should be considered.

Documents containing information for prospective buyers are being completed.

Mr Prebble said he was “quite relaxed” about the Treasury’s advice. He said the Government had many considerations to weigh before deciding how to approach the sale. Although there had been no decision made, Mr Prebble reiterated that the Government could consider going a little higher than the 25 per cent shareholding first suggested.

Mr Prebble and other Ministers have said on a number of occasions that

the Government is prepared to sell State assets to! foreign buyers. It is seen as a way of bringing new capital investment into New Zealand.

British Airways is one company known to be interested in buying a shareholding in Air New Zealand.

The Opposition spokesman on transport, Mr Warren Cooper (Otago), said National was strongly opposed to the Treasury’s recommendation that no limit be placed on a foreign shareholding in Air New Zealand. "Air New Zealand must remain predominantly a New Zealand-owned and directed airline,” he said.